PT Bukit Asam Tbk (PTBA) and PT Pertamina (Persero) have begun\nconstruction of a downstream coal project to produce Dimethyl Ether\n(DME), one of the initiatives to reduce reliance on imported Liquefied\nPetroleum Gas (LPG).<\/p>\n
The project, managed by the Badan Pengelola Investasi Daya Anagata\nNusantara (BPI Danantara), is designed to strengthen national energy\nsovereignty in line with the government\u2019s Asta Cita.<\/p>\n
Located in Tanjung Enim, the project involves collaboration between\nthe Mining SOE Holding MIND ID, PT Bukit Asam Tbk (PTBA), and PT\nPertamina (Persero). Its groundbreaking coincides with 12 other\ndownstream projects.<\/p>\n
PTBA\u2019s Director of Downstreaming and Product Diversification, Turino\nYulianto, explained that the project marks a significant milestone in\ntransforming Indonesia\u2019s mining industry through coal\nindustrialisation.<\/p>\n
He noted that the facility uses clean coal technology capable of\nreducing emissions by up to 40% compared to conventional combustion.<\/p>\n
\u201cThis project is highly significant as it is a national strategic\nproject with a capacity of 1.4 million tonnes of DME, equivalent to\naround 1 million tonnes of LPG,\u201d he stated during his speech in Tanjung\nEnim on Wednesday (29\/4\/2026).<\/p>\n
The facility, built in the 585-hectare Bukit Asam Industrial Estate\n(Beki), will process approximately 7 million tonnes of low-quality coal\nper year. All raw material supplies come from the Tanjung Enim mine, and\nthe final product will be absorbed by PT Pertamina Patra Niaga.<\/p>\n
\u201cWe are processing low-rank coal, which has previously been\nunutilised, and there is a lot of it in Indonesia. Once this project is\noperational, God willing, if it continues to develop, we can utilise\nlow-rank coal in Indonesia,\u201d Turino elaborated.<\/p>\n
On the other hand, Pertamina\u2019s Director of Strategy, Portfolio, and\nBusiness Development, Emma Sri Martini, stated that the collaboration\naddresses Indonesia\u2019s dependence on global energy supplies. She affirmed\nthat Pertamina is ready to act as a standby buyer (offtaker) to ensure\nmarket certainty for the coal downstreaming products.<\/p>\n
\u201cAlhamdulillah, Indonesia has managed to maintain the availability of\nfuel and LPG. It is not easy, ladies and gentlemen; we know well that\nIndonesia is still a net importer and has not yet achieved energy\nself-sufficiency, especially for LPG,\u201d she said on the same\noccasion.<\/p>\n
Emma revealed that Indonesia\u2019s national energy resilience for the LPG\nsector is currently only supplied domestically at 12-15%. Therefore, the\nCoal to DME project is expected to commence operations in 2028 to reduce\nthe import burden of gas, which reaches 7 million metric tonnes per\nyear.<\/p>\n
\u201cThe Coal to DME solution is a concrete approach to optimising\ndomestic resources, substituting imports, enhancing energy resilience,\nwith real multiplier effects and wide economic impacts, providing\nextraordinary socio-economic benefits,\u201d she added.<\/p>\n
In addition to strengthening energy stocks, this mega project is\nprojected to absorb 5,380 workers, from the construction phase to\noperations. PTBA\u2019s management is committed to prioritising the\nabsorption of local workers from South Sumatra to deliver direct\neconomic impacts to communities around the mine.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-finally-begins-construction-of-lpg-replacement-project-here-is-its-owner-1777452697", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }